"We need results because the French people in their daily lives need improvements... We need to invent new solutions."

He warned that "never have the risks of inertia been so great for France" as in today's fast-moving world.

But he vowed to "defend the independence of France... the identity of France".

He also called for "a Europe that protects" and the development of "a Mediterranean union".

Mr Sarkozy later rekindled the flame on the tomb of the unknown soldier at the Arc de Triomphe.

He said he could never read the letter from a young resistance fighter, Guy Moquet - who was executed in 1941 - to his parents without being "profoundly moved".

Mr Sarkozy said it was essential children knew the horror and barbarism of war and the extent of Moquet's sacrifice.

Berlin trip

On Tuesday, Mr Chirac bade farewell to the nation in a televised address after 12 years at the Elysee.

The BBC's Paris correspondent Caroline Wyatt notes that Mr Chirac leaves behind unemployment of more than 8% and a nation uncertain of its place in the world and divided over its future.

Mr Sarkozy, formerly interior minister, has a reputation as a law and order hardliner. He made the fight against illegal immigration and crime prominent in his election campaign, along with the issue of national identity. For the first time modern France is now being ruled by an immigrant's son.

"The people conferred a mandate on me... I will scrupulously fulfil it," he promised. He won with 53% of the vote and enjoys a powerful mandate after a massive turnout by the electorate.

He praised Mr Chirac's contributions to peace and the environment. The two men have been both allies and foes over the past 30 years.

Mr Sarkozy is later to travel to Berlin to meet German Chancellor Angela Merkel, a key ally and the current president of the European Union.

Mr Sarkozy is not expected to name his prime minister and cabinet until Thursday.

A former minister, Francois Fillon, is expected be made prime minister.

Reports also suggest that a senior member of the defeated Socialist party, Bernard Kouchner, is a leading candidate for the post of foreign minister.